Too many Americans treat their credit card spending limit as if it were actual income, but in fact credit card debt robs from your future to pay for the present. Last year alone, Americans rang up $400 billion worth of purchases on their plastic. The resulting $50 million in finance charges could feed the homeless population in the US for one year.

In the Budgets and Banking Module, participants learn the language of personal finance, including the definitions of principal, interest, income and expense. They see how delaying gratification can build savings so that individuals can make purchases without incurring debt. They learn to distinguish between durable and non-durable items and understand the significance of having and maintaining good credit. This is the beginning of establishing responsible spending habits that will last a lifetime.

Participants then create their own financial plans by projecting monthly income and expenses and keeping track of actual spending.

BUDGETS AND BANKING GOALS & OBJECTIVES

Understand the influence of advertising, music, and the media on one’s attitude toward money, personal needs, and sense of self-worth Be able to distinguish between wants and needs Learn how to set goals and do financial planning Learn basic budgeting and financial literacy terms Learn how to use a budget as a tool to manage income and expenses Learn how to use the services of a bank, how to write a check and reconcile a bank statement Learn the benefits of saving money, investing and making smart financial decisions Understand the consequences of spending more than one makes, of accumulating debt, and the dangers of bad credit Learn how to analyze the cost of goods and services and get the best value for your money Learn about financial markets and the basics of how to buy and sell stocks Learn the basics of starting your own business Become a community stakeholder by learning to invest in your community